MModal Inc. (MODL), a provider of medical document processing technology, agreed to be bought by a JPMorgan Chase & Co. (JPM) equity unit, One Equity, for about $1.1 billion, according to a story by Jason Gale.

If you walk by the entrance to MODL’s headquarters building in New York, JPMorgan Chase & Co. signage is already displayed.

“The all-cash deal would pay M-Modal investors $14 per share, which would be eight percent above the company's closing price Monday on the Nasdaq Global Select Market and 33 percent more than the one-year weighted average price,” said an announcement recited by Joe Carlson.”The acquisition values MModal, which had an enterprise value of $978.2 million as of March 31, at 18.8 times earnings before interest, taxes, depreciation and goodwill amortization, compared with a median of 33 times among 10 comparable deals,” according to data compiled by Bloomberg (News - Alert).

The acquisition, according to Gale, values MModal at almost nine times earnings “before interest, taxes, depreciation and goodwill amortization, compared with an average 21.3 times among 10 comparable deals, according to data compiled by Bloomberg.”

MModal has 12,000 employees in five countries, and more than 140 patents and licenses for speech recognition and understanding technology, according to its website.

Demitri Diakantonis wrote that demand for medical documentation is increasing as the government begins to regulate software programs. Two other deals took place as well: Verisk Analytics Inc., which acquired venture capital-backed MediConnect Global, Inc. for $348.5 million in cash; and speech recognition software company Nuance (News - Alert) Communications Inc., which acquired medical transcription services company Transcend Services Inc. for about $300 million.

Not surprisingly, the deal caused MModal’s stock to soar to an 11-month high. The deal is expected to close in the third quarter.

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